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BOOKS FOR DEVELOPING COUNTRIES 
A Guide for Enlisting Private-Industry Assistance 
Prepared by 

Franklin Book Programs, Inc. 


for 


United States Agency for International Dpve 
With an Advisory Committee 
Consisting of: 



Chairman: Curtis G. Benjamin, McGraw-Hill Book Company 

L.L. Bruggeman, American Book Company 
Robert Cross, Department of State 
Louis Fanget, United States Information Agency 
Curtis Farrar^ ^Agency for International Development 
Edward Napoliello,' Agency for International Development 
Peter Neumann, Addison-Wesley Publishing Company, Inc. 
Walter Rohrer/ Time-Life Bobks 


Franklin Book Programs, Inc. 
432 Park Avenue South 
New York, New York 10016 















BOOKS FOR DEVELOPING COUNTRIES 
A Guide for Enlisting Private-Industry Assistance 
Prepared by 

Franklin Book Programs. Inc. 
for 

United States Agency for International Development 
With an Advisory Committee 
Consisting of: 


Chairman: Curtis G. Benjamin, McGraw-Hill Book Company 

L.L. Bruggeman, American Book Company 
Robert Cross, Department of State 
Louis Fanget, United States Information Agency 
Cur,tis Farrar, Agency for International Development 
Edward Napoliello, Agency for International Development 
Peter Neumann, Addison-Wesley Publishing Company, Inc. 
Walter Rohrer, Time-Life Books 


Franklin Book Programs, Inc. 
432 Park Avenue South 
New York, New York 10016 





TABLE OF CONTENTS 


INTRODUCTION 


BOOKS AND NATIONAL DEVELOPMENT 

The precise role of books.1 

Indigenous books, translations, original editions..2 

Understanding the "book gap".3 

THE NATURE OF BOOK PUBLISHING 

The role of the publisher.5 

The publishing functions.6 

HOW DEVELOPING COUNTRIES CAN HELP THEMSELVES 

Need for a national policy.10 

Programs to support the policy.12 

Legislation to support the policy.16 


HOW THE PUBLISHER CAN HELP 

The situation of the U.S. publisher.20 

Operating in the developing countries.21 

Benefits to the U.S. publisher.25 

Benefits to the developing-country publisher.27 


HOW THE U.S. GOVERNMENT CAN HELP 

Locating opportunities in developing countries....30 

A. AID Private Investment Center.30 

B. Inter-American Investment Development Center.31 

Investment Guaranties.32 

Extended Risk Guaranty Program.33 

Investment loans.34 

A. Local currency loans.34 

B. Dollar loans.35 

Indirect financial assistance.36 


HOW TO EXPLORE BOOK PUBLISHING POTENTIALITIES 

Areas to investigate.39 

Next Steps. 4l 

APPENDIX A: Countries in which AID is currently 

operating..42 

APPENDIX B: Countries or areas with investment 

guaranty programs. 43 



































































INTRODUCTION 


The printed book remains the basic medium for the 
presentation and transmission of thought and knowledge. 
It is increasingly recognized that economic development, 
not to mention social and political growth, is dependent 
upon the knowledge and skills of a nation’s population 
and upon the competence and adaptability of their in¬ 
stitutions. Literacy, education, and availability of 
books are essential for the development of these human 
and institutional resources. 

The U.S. Government recognized this important role 
of books in a national book policy statement approved 
in January 1967 . That policy stresses the importance 
of encouraging book publishing capability in the devel¬ 
oping countries. This pamphlet is published pursuant 
to that policy and is designed to stimulate the inter¬ 
est of both Americans and leaders in the developing 
countries. It indicates how publishing can be strength¬ 
ened so that it, in turn, can support national develop¬ 
ment. 

This publication is directed to officers of the 
agency for International Development and other U.S. Gov- 



ernment agencies. It guides them in ways to involve the 
private sector of American book publishing in implement 
ing the national book policy overseas. It is designed 
also to be of assistance to the publishing industry in 
the U.S. We hope it will stimulate increased interest 
in working with publishers in the less developed world 
and be an aid in assessing opportunities to become in¬ 
volved. Finally, we hope this publication will be help 
ful to governments and publishers in the developing 
countries. They will find a description of the range 
of considerations we in the U.S. Government have in 
mind as we approach overseas book problems and the ways 
in which American publishers might be able to help over 
come them. 

A Committee of four leading U.S. publishers and 
four U.S. government officials, whose names are listed 
on the title page, convened in New York to work out the 
content of this brochure. Meeting under the auspices 
of Franklin Book Programs, Inc., with the assistance of 
AID Books Officer, John Rothberg, the Committee spent 
two days preparing this guideline brochure. Franklin 
Book Programs, Inc., is a non-profit organization with 
many years of experience assisting the development of 


book publishing industries in Asia, Africa, Latin 
America and the Middle East. 

We hope this publication will serve its purpose 
of stimulating and supporting the growth of publishing 
in the developing countries. 


Rutherford M. Poats 

Acting Administrator 

Agency for International Development 

February 13, 1969 


iii 





























1. BOOKS AND NATIONAL DEVELOPMENT 


The precise role of books 

The cause of books is so widely espoused that com¬ 
ments on their importance may seem unnecessary. Yet 
few people, including even ardent book enthusiasts, 
are fully alert to the special role of books in nation¬ 
al development. Indeed, in all countries of the world 
--developed as well as developing--books serve as es¬ 
sential forces for national development in several im¬ 
portant ways. 

First, they serve as tools for development of hu¬ 
man resources through education and pre-employment 
training. Every developing country of the world has a 
desperate need for more and better textbooks, reference 
books, and other instructional materials suited to the 
users 1 particular needs, background, and purchasing 
power. 

Second, books serve as tools for the development 
of national economic resources. Again every developing 
country of the world has a desperate need for books 
suited to local problems of agriculture, commerce, in¬ 
dustry, and foreign trade--a need for operating manuals, 

- 1 - 



how-to-do-it guides, technical handbooks, and practi¬ 
cal and professional treatises. 

Third, books serve to inform citizens on the po¬ 
litical, economic and social affairs of the country. 

Fourth, books serve to express and nurture the 
intellectual, cultural, and spiritual life of a coun¬ 
try. This is highly important because the establish¬ 
ment of a recognized national cultural pattern tends 
to strengthen a country’s unity and hence its po¬ 
litical and economic stability. 

Finally, of all media for education and infor¬ 
mation, books are the most penetrating and permanent. 
Radio and TV, though powerful in impact, are of course 
very ephemeral. Newspapers are'here today and gone 
tomorrow. Magazines are here this month and gone the 
next. But books, even though battered and frayed, 
endure year after year. 

Indigenous books, translations, original editions 

The more indigenous the books are, the better 
will they serve their purpose. This is especially 

true of school books and vocational training books. 

- 2 - 




Yet many developing countries have neither the experi¬ 
enced personnel nor the market resources required to 
produce indigenous textbooks of quality. Until 
these resources are fully developed, carefully adapted 
translations must fill the gap. The same is true of 
childrens books, hooks for the new-literate adult, 
and general reference hooks. 

As for university textbooks and professional 
books in science, engineering, medicine, and manage¬ 
ment, often even translated editions cannot be sup¬ 
ported because markets are too thin. However, some 
university students and professional practitioners 
who need these books are able, or may be required, 
to read them in the original language. 

Unerstanding the "book gap M 

In dealing with the "book gap" in developing 
countries, one must make a clear distinction between 
the real need and the effective demand for books. To 
the intelligent but uninformed outsider, the "book 
gap" seems to be simply a shortage of books. This 
conclusion has often led to assistance programs de¬ 
signed only to increase the supply of books per se. 






Such programs usually have failed because in actual 
fact the "gap" is between the effective market demand 
and the real need. In a number of developing coun¬ 
tries ^ the book industry has the capacity to produce 
very nearly as many books as are needed. The main 
problem is to stimulate the consumers^ both govern¬ 
mental and private^ to want and to use more books^ 
and to allocate sufficient financial resources to the 
purchase of books so as to create effective market 
demands. 

This developmental strategy is possible only 
through programs and methods that have not often 
enough been associated with "gap-filling" book pro¬ 
duction. Publishing skills^ facilities 9 and materials 
are of little value if supporting markets for the pub¬ 
lished product are not developed. 


-4- 




2. THE NATURE OF BOOK PUBLISHING 


The role of the publisher 

It must he emphasized that the essentiality of the 
publishing functions and their coordination by a pub¬ 
lisher are not well enough understood in most develop¬ 
ing countries. This lack of understanding, coupled 
with attempts to dispense with the publisher's central 
function, has resulted in the sad failure of many book 
development programs, both governmental and commercial. 
Hence it seems appropriate here to clarify the role of 
the publisher. On this subject Datus C. Smithy Jr., 
former president of Franklin Book Programs, writes as 
follows: 

/ 

Teamwork is needed to produce a book and put 
it in the hands of readers. Each member of 
the team has a necessary part to play, and 
none of them can be eliminated. No matter 
what stage of development a country may have 
reached or how simple or complex its economy, 
four basic elements must exist or be created 
if there is to be a book industry. The first 
three elements are easy to understand: the 
Author who writes the manuscript, the Printer 
who turns the manuscript into an edition of 
books, the Bookseller who sells the books thus 
produced. 

But it is the fourth partner who is in the most 
central position and whose job is least under¬ 
stood by people outside the book field: the 
Publisher, who is the grand strategist and or¬ 
ganizer of the whole undertaking, who brings 
the three other partners together, and who usu¬ 
ally serves as the basic taker of the business 

-5- 







risk of book-publishing. 

The publisher's central position gives him a 
breadth of view not easily available to the 
other partners, and an accordingly greater 
responsibility for vision, imagination, long¬ 
term planning, and a spirit of experimenta¬ 
tion. If a country Tacks a corps of publish¬ 
ers with that spirit, it will continue quietly 
along in the old grooves of high costs, low 
sales, inefficient coverage of the market 
and unimaginative development of editorial 
projects.* 


The publishing functions 

The publishing process can be understood only if 
one understands the four basic publishing functions 
--editorial, production, marketing, and distribution. 
Whether a publishing firm is a vast enterprise with a 
staff of hundreds or a single individual doing it all 
himself, the success of the enterprise depends on the 
effectiveness with which all four functions are carried 
out. Inattention to any one of them nullifies compe¬ 
tent performance of the other three. 


*Quoted by permission from Datus C. Smith, Jr., A Guide to 
Book-Publishing. R.R. Bowker, Co., New York and London, 19 





It is the editorial function to procure manuscripts 


and to prepare them for the printer. This means that 
authors must he aggressively sought out, contracts must 
he worked out with them to write hooks, and manuscripts 
must he reviewed and evaluated. When the contract has 
been signed, someone (the editor) must work closely 
with the author to improve the structure, content, and 
literary style of the manuscript. Often this editor is 
concerned also with the selection and procurement of 
proper illustrations. In the case of textbooks, he may 
arrange for classroom testing of the manuscript in pre¬ 
liminary form. And often he is responsible for secur¬ 
ing copyright for the hook on publication. 

Finally, to insure accuracy, readability, and cor¬ 
rectness of spelling, grammar, punctuation, and usage, 
the manuscript must be copyedited. Whoever copyedits 
the manuscript also "styles" it for the printer, that is, 
he indicates the typeface and size to be used for text, 
headings, footnotes, etc. Usually he sets the style 
for the book's index and helps the author to prepare the 
index copy. Proofreading and make-up of the type page 

are usually considered part of the editorial function too. 

- 7 - 



It is the production function to turn the edited 
manuscript into hound hooks. This means designing the 
physical hook for general format, type face, cover, 
and dust jacket; getting the manuscript set in type 
and managing the flow of proofs to and from the author 
and copyeditor; overseeing the preparation of engrav¬ 
ings and color plates and illustrations; and supervis¬ 
ing the printer’s work on page make-up, plating, print¬ 
ing and binding. Throughout these steps schedules must 
he adhered to and quality control must he maintained. 

When the hook is ready for publication, the market¬ 
ing function takes over. Here the primary activity is 
the organized selling of the hooks to jobbers, retailers, 
institutions, and individual buyers. Preceding and 
accompanying this organized selling is a great deal of 
promotional activity. Publicity releases and advertising 
copy are prepared for newspapers, literary magazines, and 
professional journals. Review copies are sent to all 
publications that might take note of the book. In the 
case of an educational book, sample copies are distribu¬ 
ted to teachers and school administrators. 

Finally, the distribution function embraces the so- 
called customer services--warehousing, billing and shipping. 








These services must be organized for quick and effi¬ 
cient shipment of orders* and they must be carefully 
attuned to the work of the sales staff. Coming at the 
end of the chain of publishing activity* the distri¬ 
bution function has great importance because slow and 
inefficient shipment of customers’ orders can negate 
much of the effort that has gone before. 

It should be clear that book publishing is an 
enterprise which requires close attention to infinite 
details in the production of many new and different 
products each year. It requires a variety of special¬ 
ized knowledge and high technical skills. But* most 
important* it requires general management that is 
attuned to the intellectual and educational world as 
well as the commercial world. 

For those who wish to become more informed on 
book publishing* two books are recommended: 

Smith* Datus C.* Jr., A Guide to Book Publishing* 
Bowker* 19 66 . (Cited at the beginning of this 
section.) 

Grannis* Chandler B.* What Happens in Book Pub- 
lishing* Columbia University Press* 2d ed* 1967 . 

-9- 





3. HOW DEVELOPING COUNTRIES CAN HELP THEMSELVES 


Need for a national policy 

Obviously a U.S. publisher would be reluctant to 
consider a venture in a developing country whose govern¬ 
ment is indifferent to its own book publishing industry. 
On the other hand, any government which espoused an 
active commitment to the development of its own book 
publishing industry is more likely to attract assistance 
to that industry by U.S. publishers. 

To begin with, a developing country desiring to 
assure a greater contribution by books to development 
should promulgate a national policy that recognizes 
and emphasizes the several basic roles of books in na¬ 
tional development as detailed at the beginning of this 
brochure: namely, as tools for the development of human 
and economic resources and as media for information and 
cultural expression. The people of most countries will 
not appreciate the value and uses of books without gui¬ 
dance and stimulation. Government leadership in the 
effort is highly desirable. 

Behind such a policy should be a clear understand¬ 
ing of the distinction between a publisher (as described 

- 10 - 



earlier) and a printer. Often public officials, edu- 
cators, and even authors are inclined to overlook the 
need for publishing expertise in turning a manuscript 
into a printed book. Rarely does a printer possess 
the necessary knowledge and technical skills for the 
planning, design, and editing processes that combine 
to produce a professional product--and this is es¬ 
pecially so for the production of textbooks, manuals, 
reference works, and professional books. And rarely 
does a printer possess the knowledge and facilities 
required for successful promotion and sale of a book. 

Ideally, the national policy should be one that 
will encourage book publishing as an independent, 
private-enterprise industry--if not for ideological 
reasons, then for the same pragmatic reasons for which 
even highly socialist governments have preferred to 
leave publishing in private hands: (1) to muster the 
capital, the skills, and the other resources required 
to create an adequate book publishing industry is a 
task that can be under taken by a government only at 
the cost of curtailing other vital functions; (2) en¬ 
couraging the development of a competitive private in¬ 
dustry results in a greater variety and freer choice of 

- 11 - 




books for the country’s readers. If a private pub¬ 
lisher^ warehouse is full of outdated textbooks^ 
the schools may select a more up-to-date book from 
another publisher. 

The substantial engagement of the government as 
publisher may have a damaging influence on the de¬ 
velopment of a viable private-enterprise book indus¬ 
try. This is especially true with respect to educa¬ 
tional publishing. In developed countries the pro¬ 
duction of schoolbooks usually is the mainstay of the 
book publishing industry. Where this important area 
is preempted by the government, it is very difficult 
for the country’s private industry to support commer¬ 
cial publication of general and professional books 
alone. 

Programs to support the policy 

To prevent this policy from becoming merely a 
catalog of resounding slogans^ it is important for a 
government to show its commitment by deed as well as 
word. Some stepsdiscussed later,, may require legis¬ 
lative action; but many steps can be taken within the 

existing authority of responsible ministries. Among 

- 12 - 



these would be: 

A. Reaffirm the high priority of development of the 
country’s educational system. In planning the book com¬ 
ponent of the system^ recognize textbooks as basic tools 
of instruction and use them as instruments for improving 
teaching methods and curriculum content. Assess the 
capacity of students to purchase essential textbooks and 
the need for measures to assure the availability of 
textbooks such as free distribution^ or subsidies to 
students or to the individual publisher. Establish insti¬ 
tutes and workshops for teachers on the effective use of 
books in the educational process. Encourage teachers to 
instill lifetime reading habits in students. 

B. Encourage and support the establishment of public^ 
school^ industrial^ research and other professional li¬ 
braries. An extensive system of libraries not only serves 
the readers but provides a basal market for the support 

of writing and publishing activity. Libraries foster read 
ingj and reading supports writing^ publishing and booksell 
ing. 

C. Undertake > or support a private-sector undertaking 
of, a program to identify and measure the need of books in 

all categories that are important to national development; 

- 13 - 


then to determine priorities. This can best be done as 
a joint effort between government and private-sector 
interests, with educators, librarians, and other pro¬ 
fessional people having a large part in the undertaking. 

D. Encourage and support activities that will make 
all citizens aware of the importance of books in personal 
and civic development; e.g., book exhibits, national book 
awards, national library weeks, reading development con¬ 
ferences, national book development conferences, national 
and local book fairs, oral readings in libraries and 
schools, competitive awards for student library collec¬ 
tions, etc. Such activities can usually be organized 
with minimal guidance and support by civic, educational, 
and professional groups. Literature on the organizations 
of such programs is available in the U.S. and several 
other countries. 

E. Encourage production of general bibliographies 
and specialized lists of books in the national language. 
The infant book industries of many developing countries 
are further handicapped by inadequate bibliographic ser¬ 
vices . 

P. Encourage the production and use of locally writ¬ 
ten books designed to meet the needs of the country, es- 

- 14 - 


pecially vocational textbooks and textbooks in history, 
geography, government, and literature. To this end a 
government committed to developing a book publishing 
industry should provide: 

1. Guidance on curriculum structure and con¬ 
tent for authors, editors, and publishers. 

2. Access to classroom facilities for testing 
instructional materials in preliminary form. 

3. A freely competitive system for the approv¬ 
al and adoption of textbooks in all subjects 
that support commercial publication. 

4. Institutes or workshops for the training of 
textbook authors, translators, and editors. 

5. Subsidies as necessary to produce textbooks 
in limited-enrollment subjects as well as 
dictionaries, encyclopedias, atlases, and 
other reference books that cannot be com¬ 
mercially produced. 

G. Encourage the translation and adaptation of foreign 
language books in subjects in which the country cannot pro¬ 
duce its own. Translations should be arranged on a pub- 
lisher-to-publisher basis rather than an author-to-transla- 
tor basis, as the original publisher customarily controls 
the translation rights, and can usually insure better con¬ 
trol of the quality of translated editions. Rights for the 
production of translated editions in the national languages 

of most developing countries usually are available at low 

-15- 


cost. Further, this cost usually is not a large frac¬ 
tion of the total cost of producing such editions. 

H. Foster the development of an efficient system 
of hook distribution through competent retailers in 
the major market centers of the country. Rapid and 
dependable shipping facilities, protection against 
pillage, regulation of credit and collection proce¬ 
dures, and protection against unfair or illegal trade 
practices--all are important factors in such a sys¬ 
tem. Many a worthy book-development program has 
failed because no attention was given to the need to 
get published books to where the people can see and 
buy them. 

I. Encourage the organization of national associa¬ 
tions of publishers and booksellers for the improvement 
and self-regulation of their industries. Support the 
efforts of these organizations to produce meaningful na 
tional statistics on book publishing and distribution. 

Legislation to support the policy 

The foregoing programs are ones which could be car 

ried out by an education ministry or another ministry 

concerned with the country ! s cultural welfare. The ini 

-16- 



tiating officials would probably be educators and hence 
favorably disposed to such programs* whether or not they 
did anything to carry them out. 

Other steps* however* might require legislative 
change and are more difficult to effect because the indi¬ 
viduals who can initiate them are probably not educators 
and may be much more concerned with steel mills* cement 
plants* and fertilizer factories. Nonetheless* it is 
important that the country's legislators be persuaded of 
the importance of the following steps: 

A. Avoid or minimize duties and other types of re¬ 
strictions on the import of printing and binding equip- 
ment* of paper* ink* and binding cloth. Many developing 
countries place their publishing and printing industries 
at a disadvantage by maintaining import duties on the 
machines and materials needed for local book production* 
but not on imported books. 

B. Provide such financial incentives for the estab¬ 
lishment of necessary commercial publishing enterprises 
as the following: 

1. Long-term* low-interest loans by national 
banks or governmental development corpora¬ 
tions to enable publishers to finance large 
printings that bring down unit costs. 

-17- 


2. Low postal rates for books and other educa¬ 
tional and cultural materials. 

3. A purchasing policy requiring government 
agencies: to acquire needed books through nor¬ 
mal book-trade channels. Any by-passing of 
such channels is hurtful to the development 
of a healthy book distribution system. 

4. Abatement of taxes, or simplification of the 
tax structure. 

C. Establish and strictly enforce a strong national 
copyright law. This will stimulate writers, translators, 
and illustrators by rewarding their creative efforts 

and protecting the identity and integrity of their works; 
it will stimulate publishers by protecting their invest¬ 
ments in published works. Adherence to the UNESCO Uni¬ 
versal Copyright convention and/or the so-called Berne 
convention (the International Union for the Protection of 
Literary and Artistic Works) is desirable from the nation¬ 
al point of view and a sine qua non for the participation 
of the U.S. book industry. No U.S. publisher is likely 
to invest in a country that fails to protect its own au¬ 
thors and publishers or that allows free-for-all transla¬ 
tions of foreign books. 

D. Adhere to the Florence Agreement and the Beirut 

Agreement. The purpose of these two UNESCO trade treaties 

is the elimination of tariff and other restrictions on 

-18- 



the import of educational materials—audiovisual as 
well as books and other printed matter. While adher¬ 
ence to these agreements has no direct bearing on in¬ 
digenous publishing, it indicates the nation’s commit¬ 
ment to educational development, and this, or course, 
is of major importance to the nation’s book trade. 

E. Ensure reasonable rates of taxation on profits 
earned on foreign investments, and provide reasonable 
conditions for the withdrawal of both profits and in¬ 
vested foreign capital. This will enable the coun¬ 
try’s publishing firms to establish joint-venture op¬ 
erations and other forms of cooperation with publish¬ 
ers in developed countries, bringing considerable bene¬ 
fits to the local book industry. 


- 19 - 


4. HOW THE U.S. PUBLISHER CAN HELP 


The situation of the U.S. publisher 

At the outset, it should he recognized that only 
a few U.S. firms are likely to invest any substantial 
amounts of time, effort, or money in other-country 
publishing enterprises. The majority of U.S. publish¬ 
ers find satisfactory markets at home and are not in¬ 
clined to take the extra time and risks involved even 
to develop their export market, let alone to engage in 
foreign publishing--even in other developed countries. 

As a consequence, export sales (primarily scien¬ 
tific, technical, and medical books, and low-priced 
paperbacks and ''picture" books) account for only 8$ of 
total annual sales of the U.S. book industry, compared 
with 43$ for Britain and 36$ for West Germany, in which 
countries the situation is "export or die." Moreover, 
the British publishers, especially, have engaged heavily 
in other-country publishing. 

Since the total annual volume of U.S. book sales 
--domestic plus export—is roughly six times that of 
Britian and five times that of West Germany, the volume 

of U.S. books exported is quite large. But with their 

- 20 - 



considerably larger domestic market most U.S. publish¬ 
ers have felt little need to look abroad. 

This situation has changed somewhat in the past 
decade. It may change quite rapidly in the next. Cer¬ 
tainly there is a growing potential for U.S. publishers 
in the developing countries--a potential for increased 
export sales of their U.S. editions, for production and 
sales of local editions of their titles (translations 
and reprintings) , and for the publishing of completely 
indigenous books. 

Operating in the developing countries 

The particular formula under which an American 
publisher might operate in a developing country will 
depend on the laws of the selected country, the level of 
its publishing industry, what the American publisher 
wishes to do in the country, the amount of risk he is 
willing to take, and many other considerations. While 
there are endless variations, there are essentially four 
patterns a U.S. publisher can follow. He can establish 
a wholly-owned domestic company with no local partici¬ 
pation; a joint-venture company with local participation; 

a foreign branch; or a partnership or some other kind of 

- 21 - 



working arrangement with a local publishing organization. 
Let’s consider each of these: 

A. Establish a wholly-owned domestic company in the 
selected country, providing all the capital and manage¬ 
ment and editorial capability, and assuming all the risks 
Under the laws of certain countries, this kind of company 
is not permitted; in others it is the only way in which 
an enterprise can be started. It can be the only way in 
a country with an attractive market potential but no pub¬ 
lishing capability and no private capital for investment 
in book publishing. In other developing countries where 
there is at least an incipient book industry, the foreign 
owned domestic company may be open to attack and discri¬ 
mination in matters of trade regulations, assessments and 
taxes. 

B. Establish a jointly-owned domestic company in 
which nationals of the selected country own a part of the 
stock. In many countries this is the best way, and usu¬ 
ally it is the best for textbook publishing. As a prac¬ 
tical matter, it can provide local defense against the at 
tacks and discriminations mentioned above. In most coun¬ 
tries, the nearer the ownership is to 50-50$, the more 

satisfactory it is to the national interests. In certain 

- 22 - 




countries only minority ownership by foreign interests 
is permitted by law. 

C. Establish a foreign-branch operation, which 
usually must operate without certain important bene¬ 
fits and protections that domestic companies enjoy. 

In some countries, this disadvantage may be preferred 
to the cost and risk of capital investment in a do¬ 
mestic company. In most cases, a branch-office opera¬ 
tion cannot be counted on to attract strong local sup¬ 
port, and this can be important in the development and 
procurement of indigenous manuscripts. 

D. Establish a partnership or other working asso¬ 
ciation with a local publishing firm. This arrangement 
is not likely to require much capital from the American 
publisher, and the various possibilities for cooperation 
are infinite, ranging from the licensing by the U.S. 
publisher of his titles for translation or reprinting 

to instituting a system whereby the U.S. publisher pro¬ 
vides specified services and/or training. A few examples 
will illustrate the variety of possible arrangements. 

1. If the objective is to produce indigenous 
books, the U.S. partner might help in edi¬ 
torial planning and development, and assist 
the domestic partner in handling production, 

-23- 






marketing, and distribution. 

2. If the objective is to produce trans¬ 
lations , the U.S. partner could con¬ 
tract to supply translation rights 
plus editorial and production services. 

Here the U.S. partner assumes responsi¬ 
bility for the translation of the titles 
jointly selected, editing the manuscripts, 
and seeing the books through the press. 

To accomplish this he might establish an 
editor and production supervisor in the 
other country and thus provide expert 
knowledge and skills not otherwise avail¬ 
able to his partner. 

3. If the objective is to produce English- 
language reprints of the U.S. partner’s 
titles, the U.S. partner could provide 
rights under a licensing agreement which 
includes management and/or advisory ser¬ 
vices to help the domestic partner with, 
say, marketing and distribution. 

4. If the objective is to improve the domes¬ 
tic partner’s procedures, the U.S. partner 
could establish a contract for advisory, 
management, or training services on any or 
all of the functional aspects of publishing. 
Here, as in the three preceding examples, it 
may be to the U.S. partner’s advantage to 
work out an arrangement whereby he is paid 
for services on some kind of a royalty basis, 
since in some developing countries, royalties, 
unlike profits, are not taxed and are freely 
transferable. 

5. If the books produced under any such partner¬ 
ship arrangement as suggested above have 
substantial export potential, the U.S. part¬ 
ner could handle international sales, the 
domestic partner, the sales within the coun¬ 
try. 


The foregoing are merely to suggest the almost 

-24- 


infinite number of possible working arrangements that 
could be developed between a U.S. publisher and a 
partner firm in a developing country. But whatever 
the arrangement, it is bound to have advantages and 
disadvantages to either side. Flexibility and a 
willingness to make concessions are basic requirements 
on both sides. And always it should be recognized 
that any kind of joint venture that does not provide 
substantial benefits to both sides is unlikely to 
succeed. 






Benefits to the U.S. publisher 

In engaging in publishing ventures in developing 
countries, the U.S. publisher must in most instances 
look to long-range rather than immediate benefits. He 
must also look to intangible as well as tangible bene¬ 
fits, and to societal as well as personal or corporate 
benefits. And he must be prepared to measure results 
flexibly for each separate venture. 

With regard to earnings, a fairly long-range ex¬ 
pectance is in order, though in some instances immedi¬ 
ate net income can be developed. Royalty income can be 

quicker and surer, but profit income can be higher. As 

-25- 







a rule the rate of profit on investment can be quite 
satisfactory, because operating capital usually goes 
a long way in a developing country. 

Through the experience a U.S. publisher gains 
in a country ! s trading practices and local markets, 
and by establishing the company's imprint and "pres¬ 
ence" in the country, he is very soon much better 
able to promote export sales to the country. Further¬ 
more, in helping to build and support book publishing 
skills, and by increasing literacy and improving edu¬ 
cation, he is promoting economic progress and polit¬ 
ical stability in nations that will eventually pro¬ 
vide extensive export markets for U.S. books. This is 
a long-range benefit, but in several developing nations 
the potential can eventually be very large. 

In some countries the U.S. publisher will be able 
to promote the prestige and welfare of his U.S. authors 
by producing more translations of their works. At the 
same time he is gaining direct knowledge of the intel¬ 
lectual and literary life of the developing country for 
the purpose of translating and propagating the work of 
its emerging authors. 


- 26 - 


Benefits to the developing-conntry publisher 

It has already been stated that any kind of joint 
venture that does not prove substantial benefits to 
both sides is unlikely to succeed. From the foregoing 
it can be seen that the benefits to the U.S. partner 
can be quite substantial. Are they balanced by equal¬ 
ly substantial benefits for his developing-country 
partner? 

Perhaps the most tangible and immediate benefit 
for him is the investment of low-cost U.S. capital, in 
one form or another, to provide for capital expansion 
or added working capital, or both, as required. In 
most developing countries this is the most important 
and the most sought of all possible benefits to a book 
publishing enterprise. 

Also tangible and almost as immediate are pre¬ 
ferred access to the U.S. partner*s published books 
for translation or, when feasible., reprinting of the 
English-language edition for the national or regional 
market. Another tangible benefit is help in develop¬ 
ing operating knowledge and skills in book publishing. 
Specifically this help might embrace any or all of the 
following: 


- 27 - 



1. The company's organizational structure 
and general management methods, in¬ 
cluding accounting. 

2. Manuscript procurement and editing; 
planning and preparation of revisions 
with efficiency and economy; prepara¬ 
tion of copy for the printer and super¬ 
vision of his work; design, illustration, 
layout, proofreading, page make-up, and 
indexing (the editorial and production 
functions described earlier). 

3. Marketing, including publicity, adver¬ 
tising, direct mail sales, sales to insti¬ 
tutions and dealers on a national scale, 
export sales (if the potential exists, 

the U.S. partner's international mailing 
lists are important here.) 

4. Warehousing, packing, and shipping methods 
and facilities. 

5. Management of copyrights, translation 
rights, and serial republication rights. 

All of these are possible tangible benefits. In 
addition, numerous intangible benefits can be realized 

1. Prestige and promotional value of association 
with the U.S. partner’s imprint. 

2. Establishment of channels for information 
about the development of related non-book 
educational material that may be imported 
or adapted for local sale to schools. 

3. Help in pursuing beneficial relations with 
local booksellers, librarians, educators, 
government officials, and other opinion- 
molders. 

4. Help in effective participation in a na- 

- 28 - 


tional effort to increase public aware¬ 
ness of the value of books and to create 
effective markets for them. 

5. Help in any necessary effort to overcome 
existing or threatened barriers to the 
free flow and wide use of books within 
his nation. 

Any or all of this roster of possible benefits 
could serve to enhance the prestige of a developing 
country publishing firm and the industry generally 5 to 
increase sales and profits, and to enable the production 
of the kinds of books needed for the nation’s develop¬ 
ment . 






- 29 - 


5. HOW THE U.S. GOVERNMENT CAN HELP 


The U.S. Government sponsors several programs that 
provide incentives to U.S. private industry for commer¬ 
cial investments in developing countries. These pro¬ 
grams have been of limited use to hook publishers be¬ 
cause they are tailored more to the needs of the "hard- 
goods” and heavy construction industries. However* de¬ 
pending upon his objectives a publisher could still make 
use of them; hence all of them should be better known 
to the U.S. book industry and especially to the textbook 
sector. 

Locating opportunities in developing countries 

A. AID Private Investment Center. This division of 
AID* through its investment survey program can provide 
financial assistance to potential investors to investi¬ 
gate specific opportunities in the developing countries 
which might contribute to the achievement of AID f s ob¬ 
jectives. Under this program if the prospective inves¬ 
tor following his survey decides to make the investment* 
he bears all the expenses of the survey and retains ex¬ 
clusive rights to the information derived. But if he 

decides not to make the investment* AID will pay up to 

-30- 



50$ of the approved survey costs provided the surveyor 
has complied with the terms of the survey agreement. 
Chief among these terms is the timely submission of a 
professionally acceptable technical survey report. 

The report and other proceeds of the survey become 
the property of the U.S. Government. 

B. The Inter-American Investment Development Cen¬ 
ter (IIDC). This is a private business organization 
created in 1967 with financial support from AID. Its 
purpose is to bring U.S. private investors face-to- 
face with Latin American business opportunities.. It 
operates as an autonomous, non-profit division of the 
Council for International Progress in Management 
(USA), Inc. The address of the Center is 845 Third 
Avenue, New York* 10022. The program’s "target and 
course of action" has been stated as follows: 

To encourage the investment of private U.S. 
capital, technology, and management capa¬ 
bilities in Latin America. A development 
center which acts as an investment clearing¬ 
house has been established to receive project 
proposals from Latin American development 
banks and other development institutions. 
Evaluated investment opportunities are facil¬ 
itated for medium sized U.S. firms who have 
heretofore not had access to an organized 
mechanism for identifying investment oppor¬ 
tunities. Through income earned in the form 
of * finders fees’, the customary percentage 

-31- 


paid to investment promotion firms by in¬ 
vestors, it is planned that the Center will 
become self-sustaining. AID funding will 
be gradually decreased and phased out in 
approximately four years. The return sought 
is investment at a $ 50:1 to $100:1 ratio of 
private financing for each U.S. government 
dollar expenditure. 


Investment Guaranties 

The AID Private Investment Center also adminis¬ 
ters two programs under which it is possible for an 
entrepreneur investing in a developing country to 
secure guaranties against certain risks. Under the 
first of these programs, the Investment Guaranty Pro¬ 
gram, AID will enter into a contract to guarantee eli¬ 
gible United States citizens (individuals and business 
organizations) against certain political risks in more 
than 85 developing countries and in a number of overseas 
dependencies of the industrialized countries (see Ap¬ 
pendix for list). As in the investment survey program, 
the purpose is to encourage private U.S. investments 
abroad which will further the development of the eco¬ 
nomic resources and productive capacities of such coun¬ 
tries, raise the standards of living and increase tech¬ 
nical efficiency. Consequently, guaranties are avail- 

-32- 



able only for new investments and the expansion and 
modernization of existing enterprises, not for the 
purchase of existing investments or for investments 
which were irrevocably committed before application 
for a guaranty was made. 

This program provides investment guaranties 
against the following political risks: 

1. Inability to convert into dollars, foreign 
currency representing earnings on, or re¬ 
turn of, the investment, or compensation 
of the investment. 

2. Loss due to expropriation or confiscation 
of the investment. 

3. Damage to the physical assets of the in¬ 
vestment attributable to war, revolution 
or insurrection. 

Projects in which investments are being made must be 
approved by AID and by the host foreign government as 
furthering the developmental purposes discussed above. 
There is no restriction as to the size of the invest¬ 
ments which may be guaranteed. 


Extended Risk Guaranty Program. For certain high- 
priority projects in all but a small number of the 85 
countries referred to above, this program can provide 
protection against losses due to all risks (except 


- 33 - 




fraud or misconduct of the investor)* on up v 'to 75$ of 
a debt investment and 50 $ of an equity investment in 
a private foreign enterprise. Any portion of the in¬ 
vestment not covered by an extended risk guaranty may 
be insured under AID*s specific risk guaranty pro¬ 
gram discussed in the preceding paragraph. Under the 
extended risk guaranty program, AID is interested in 
investments which will lead to the establishment, ex¬ 
pansion or modernization of productive facilities, 
principally those concerned with the improvement of 
food supplies. 

Investment Loans 

A. Local Currency Loans. Under Public Law 480 
(the Agricultural Trade Development and Assistance 
Act of 1954) certain of the foreign currencies re¬ 
ceived by the U.S. Government in payment for agricul¬ 
tural commodities may be lent to qualified borrowers 
to develop business and expand trade. These local 
currency loans, usually referred to as "Cooley Loans," 
are available to (a) U.S. firms for business develop¬ 
ment and trade expansion in the foreign country, or (b) 

either U.S. firms or firms of the local country for ex- 

-34- 



panding markets for, and consumption of, U.S. agricul¬ 
tural products abroad. 

In some countries there are other local currency 
funds available for lending to private enterprise. 

AID participates in their establishment and provides 
guidance in their use, but does not itself make the 
loans. Inquiries about the availability of such local 
currency funds in a specific country should be address¬ 
ed to the U.S. AID Mission in the country, in care of 
the American Embassy, or to the appropriate regional 
bureau in AID/Washington. 

B. Dollar Loans. AID has authority, under the 
Foreign Assistance Act of 1961, to make dollar loans to 
private (as well as public) enterprise, both U.S. and 
foreign. Normally, U.S. dollar loans are to be used to 
cover the U.S. procurement component of the project, 
with a few exceptions permitted. The Administrator of 
AID, before authorizing loans, must take into account 
the availability of financing from other free world 
sources on reasonable terms. Hence, a prospective bor¬ 
rower should investigate a number of private and other 
public institutions before making formal application to 
AID. 


- 35 - 



Indirect Financial Assistance 

In certain developing countries there are excess¬ 
es of U.S. owned local currencies that may he used to 
great advantage in financing indigenous hook produc¬ 
tion programs. (The present list of excess-currency 
countries includes Burma, Ceylon, Guinea, India, 
Israel, Morocco, Pakistan, Poland, Tunisia, U.A.R., 
and Yugoslavia.) These excess currencies may he ac¬ 
quired only hy departments or agencies of the U.S. 
Government through purchase or appropriation, or 
through allocation hy the Budget Bureau with infor¬ 
mal concurrence of appropriate Congressional com¬ 
mittees. Use of funds thus acquired must he pro¬ 
grammed hy U.S. embassy or mission officials, and 
each stipulated use must, of course, he approved hy 
the government of the host country. 

While these excess local-currency funds are not 
available directly to commercial publishers, they may 
he spent on a program that serves as a market incen¬ 
tive to U.S.-publisher participation. Such a pro¬ 
gram now under way in India for the reprinting of 
college-level English-language textbooks is subsi¬ 
dized by an annual allocation of the equivalent of 

- 36 - 



$3*000,000 in rupees. This expenditure supports the 
reprint of approximately 200 titles annually, averaging 
some 3500 copies each. AID funds support science and 
technology titles; USIA funds support social science 
and humanities titles. Selection of the titles to be 
reprinted is the joint responsibility of the Indian 
Ministry of Education and the U.S. Mission in India. 

The reprinted editions are produced and sold by com¬ 
mercial publishers. 

A similar program in Yugoslavia produces col¬ 
lege-level texts (mainly in science and agriculture) 
in Serbo-Croation editions under an executive arrange¬ 
ment between the governments of that country and the 
U.S. This five-year program is financed by an annual 

1 

allocation of the equivalent of $250,000 in dinars. 

It produces about fifty titles annually, which are 
selected by the Yugoslav Ministry of Education and ap¬ 
proved by the U.S. Mission. 

Smaller book programs supported by excess-currency 
funds are now being phased out in Indonesia, Poland, 
Pakistan and the U.A.R. 

When a situation is identified in an excess-cur¬ 
rency country where the availability of local currency 

-37- 


could support an effort to strengthen local publishing, 
it should be reported and tentative proposals submitted 
to AID/Washington or USIA/Vashington. 


- 38 - 


6. HOW TO EXPLORE BOOK PUBLISHING POTENTIALITIES 


Areas to investigate 

The U.S. official on the scene who wishes to ex¬ 
plore further the possibility of involvement by U.S. 
publishers in local book publishing will want to be¬ 
come fully informed about the local situation. By 
seeking out local officials, educators, publishers, 
printers, distributors, booksellers, and librarians 
he can learn a great deal. Visits to schools, print¬ 
ing plants and bookstores will also give him a feel¬ 
ing of some of the local problems. The local U.S. 
Embassy, particularly the commercial attaches office, 
may have useful information on' the local printing 
and/or paper industries. The following areas are ones 
that should be investigated: 

1. The organizational pattern of the edu¬ 
cational system; the enrollments at 
elementary, secondary and tertiary levels; 
the curricula offered; the use of text¬ 
books and effective demand and present 
supply of them at each level; the profes¬ 
sional capability for textbook writing and 
translation, etc. 

2. The effective demand and supply of general 
books. 

3. The effective demand and supply of books for 

-39- 



on-the-job training and professional 
use. 

4. The country's library systems to deter¬ 
mine their size^ needs^ and purchasing 
power. 

5. The existing book publishing industry, 
the established firms and their partic¬ 
ular areas of interest and competence; 
the number and classification of titles 
published annually; the size of print¬ 
ings; the total volume of sales; and the 
general attitude toward foreign partic¬ 
ipation in their industry. 

6. The existing book trade to determine its 
wholesale and retail components and its 
ability to sell consumers on both local 
and national scales; its ability to ser¬ 
vice libraries and schools; its sales by 
major categories of books; and its trading 
relations with publishers. 

7. The facilities and general competence of 
the existing book manufacturing industry 
and the supply of book manufacturing 
materials. (Special attention should be 
given to book-binding machinery because 
inmost developing countries printing 
facilities are far better than binding 
facilities.) Here it is well to remember 
that manufacturing facilities are not 
absolutely necessary for.the establishment 
of a publishing industry. If necessary^ 
manufacturing can be done in another coun¬ 
try. Book manufacturing materials and 
bound books are very transportable. 

8. The willingness of banks and other finan¬ 
cial institutions to provide venture cap¬ 
ital to finance private publishing enter¬ 
prises and the terms and interest rates 
on the loan of such capital. Also the 
willingness of the government to provide 

-4o- 


loans or guaranties of loans for book 
development enterprises. 

9. Legislation, import duties, foreign 
exchange restrictions effecting the 
local book industry (as discussed 
earlier) 

Next steps 

If these investigations develop an encouraging 
picture, the investigator should then make more direct 
inquiries of a few of the country*s leading publishers 
regarding their individual interest in possible joint 
ventures with U.S. publishers. Where sufficient in¬ 
terest is expressed, it might be well to inquire spe¬ 
cifically about the names of American firms, or types 
of firms, to which the interest runs in each case. 

Where expert technical assistance is needed for 
a particular area of investigation, requests for such 
assistance should be made of AID/Washington. 

The final step is to report a summary of findings 
and recommendations to AID/Washington. AID/Washington 
will then be responsible for relaying the report to the 
U.S. book industry through established trade-organiza¬ 
tion channels and for following through on expression 
of interest. 

-4l- 



APPENDIX A 


COUNTRIES IN WHICH AID IS CURRENTLY OPERATING 


AFRICA 


Botswana 

Burundi 

Cameroon 

Central African Rep. 

Chad 

Congo 

Dahomey 

Ethiopia 

Gabon 

Gambia 


Ghana 
Guinea 
Ivory Coast 
Lesotho 
Liberia 

Malagasy Republic 

Malawi 

Mali 

Mauritius 

Morocco 

Kenya 


Niger 

Nigeria 

Rwanda 

Senegal 

Sierra Leone 

Somali Republic 

Swaziland 

Tanzania 

Tunisia 

Uganda 

Zambia 


EAST ASIA 


NEAR EAST/SOUTH ASIA 


Burma 

Indonesia 

Korea 

Laos 

Philippines 

Thailand 

Vietnam 


Afghanistan 

India 

Jordan 

Nepal 

Pakistan 

Turkey 


LATIN AMERICA 

Argentina 

Bolivia 

Brazil 

Central America: 
Costa Rica 
El Salvador 
Guatemala 
Honduras 
Nicaragua 


Chile Paraguay 

Colombia Peru 

Dominican Republic Uruguay 

Ecuador Venezuela 

Guyana 

Haiti 

Jamaica 

Mexico 

Panama 


11/25/68 


-42- 







APPENDIX B 


AGENCY FOR INTERNATIONAL DEVELOPMENT 

OFFICE OF PRIVATE RESOURCES 

Specific Risk Insurance Division 
Washington, D. C. 20523 

COUNTRIES OR AREAS WITH INVESTMENT GUARANTY AGREEMENTS - December 2, 1968 

Availability of investment insurance subject to change without notice. 

The following countries are those with which the United States has 
executed the necessary documents for an investment insurance program. 
Changing economic and political situations may affect availability of 
insurance and, therefore, no commitments should be made as to available 
coverage on basis of this list without contacting the A.I.D. Insurance 
Division. 

War, Revolution 


Convertibility 

Expropriation 

Afghanistan 

Afghanistan 

Antigua 

Antigua 

Argentina 

1/Argentina 

Barbados 

Barbados 

Bolivia 

Bolivia 

Botswana 

Botswana 

Brazil 

Brazil 

British Honduras 

British Honduras 

Cameroon 

Cameroon 

Central African 

Central African 

Rep. 

Rep. 

Ceylon 

Ceylon 

Chad 

Chad 

Chile 

Chile 

China, Rep. of 

China, Rep. of 

Colombia 

Colombia 

2/Congo 

2/Congo 

(Brazzaville} 
Congo (Kinshasa) 

(Brazzaville 
Congo (Kinshasa 

Costa Rica 

Costa Rica 

Cyprus 

Cyprus 

Dahomey 

Dahomey 

Dominica 

Dominica 

Dominican Rep. 

Dominican Rep. 

Ecuador 

Ecuador 

El Salvador 

El Salvador 

Ethiopia 

Ethiopia 

Gabon 

Gabon 

Gambia 

Gambia 

Ghana 

Ghana 

Greece 

Greece 

Grenada 

Grenada 

2/Guatemala 

2/Guatemala 

Guinea 

Guinea 

Guyana 

Guyana 

Haiti 

Haiti 


& Insurrection 

Extended Risk 

♦Afghanistan 

• — 

Antigua 

Antigua 

1/Argentina 

1/Argentina 

Barbados 

Barbados 

Bolivia 

Bolivia 

Botswana 

Botswana 

Brazil 

Brazil 

British Honduras 

British Honduras 

Cameroon 

Cameroon 

Central African 

Central African 

Rep. 

Rep. 

Ceylon 

Ceylon 

Chad 

Chad 

Chile 

Chile 

China, Rep. of 

China, Rep. of 

Colombia 

Colombia 

2/Congo 

2/Congo 

(Brazzaville) 
Congo (Kinshasa) 

(Brazzaville) 
Congo (Kinshasa) 

1/Costa Rica 

2/Costa Rica 
Cyprus 

Cyprus 

Dahomey 

Dahomey 

Dominica 

Dominica 

Dominican Rep. 

Dominican Rep. 

Ecuador 

Ecuador 

Ethiopia 

Ethiopia 

Gabon 

Gab oh 

Gambia 

Gambia 

Ghana 

Ghana 

Greece 

Greece 

Grenada 

Grenada 

Guinea 

Guinea 

Guyana 

43 - 

Guyana 









COUNTRIES OR AREAS WITH INVESTMENT GUARANTY AGREEMENTS (Con’d.) 


Convertibility 

Expropriation 

War, Revolution 
& Insurrection 

Extended Risk 

Honduras 

Honduras 

Honduras 

Honduras 

India 

India 

India 

India 

Indonesia 

Indonesia 

Indonesia 

Indonesia 

Iran 

Iran 

-- 

-- 

Israel 

Israel 

Israel 

Israel 

Ivory Coast 

Ivory Coast 

Ivory Coast 

Ivory Coast 

Jamaica 

Jamaica 

Jamaica 

Jamaica 

Jordan 

Jordan 

Jordan 

Jordan 

Kenya 

Kenya 

Kenya 

Kenya 

Korea 

Korea 

Korea 

Korea 

Laos 

Laos 

Laos 

Laos 

Lesotho 

Lesotho 

Lesotho 

Lesotho 

Liberia 

Liberia 

Liberia 

Liberia 

Malagasy 

Malagasy 

Malagasy 

Malagasy 

Malawi 

Malawi 

Malawi 

Malawi 

Malaysia 

Malaysia 

Malaysia 

Malaysia 

Mali 

Mali 

Mali 

Mali 

Malta 

Malta 

Malta 

Malta 

Mauritania 2/ 

Mauritania 2/ 

Mauritania 2/ 

Mauritania 2/ 

Morocco 

Morocco 

Morocco 

Morocco 

Nepal 

Nepal 

Nepal 

Nepal 

Nicaragua 

Nicaragua 

Nicaragua 

Nicaragua 

Niger 

Niger 

Niger 

Niger 

Nigeria 

**Nigeria 

-- 

-- 

Pakistan 

Pakistan 

Pakistan 

Pakistan 

Panama 

Panama 

Panama 

- 

Paraguay 

Paraguay 

Paraguay 

Paraguay 

Peru 

-- 

-- 

- 

Philippines 

Philippines 

Philippines 

Philippines 

Portugal 

Portugal 

— 

- 

Rwanda 

Rwanda 

Rwanda 

Rwanda 

Senegal 

Senegal 

Senegal 

Senegal 

Sierra Leone 

Sierra Leone 

Sierra Leone 

Sierra Leone 

Singapore 

Singapore 

Singapore 

Singapore 

Somalia 

Somalia 

Somalia 

Somalia 

■St. Christ.-Nevis- 

St. Christ.-Nevis- 

St. Christ.-Nevis 

St. Christ.-Nevis 

Ang. 

Ang. 

Ang. 

Ang. 

St. Lucia 

St. Lucia 

St. Lucia 

St. Lucia 

Sudan 2/ 

Sudan 2/ 

Sudan 2/ 

Sudan 2/ 

Swaziland 

Swaziland 

Swaziland 

Swaziland 

Tanzania (Mainland 

Tanzania (Mainland)Tanzania (Mainland) 

Tanzania (Mainlan 

only) 

Thailand 

Thailand 

Thailand 

Thailand 

Togo 

Togo 

Togo 

Togo 

Trinidad-Tobago 

Trinidad-Tobago 

Trinidad-Tobago 

Trinidad-Tobago 

Tunisia 

Tunisia 

Tunisia 

Tunisia 

Turkey 

Turkey 

Turkey 

Turkey 

Uganda 

Uganda 

Uganda 

Uganda 

Upper Volta 

Upper Volta 

Upper Volta 

Upper Volta 

U.A.R. (Egypt) 2/ 

U.A.R. (Egypt) 2/ 

U.A.R.(Egypt) 2/ 

U.A.R. (Egypt) 2/ 


-44- 















COUNTRIES OR AREAS WITH INVESTMENT GUARANTY AGREEMENTS (Cont'd.) 


Convertibility 


Expropriation 


War, Revolution 

& Insurrection Extended Risk 


1/Uruguay 

Vietnam 

Venezuela 

2/Yugoslavia 

Zambia 


1/Uruguay 
Vietnam 
Venezuela 
2/Yugoslavia 
Zambia 


Vietnam 

Venezuela 


Zambia 


Vietnam 

Venezuela 


Zambia 


1/Although applications will be accepted, guaranties cannot be processed 
until agreement is ratified by country's legislative body and in force. 

2/Restricted Availability. 

* Includes only insurance against loss due to damage from war. 

**Changes from November 6 , 1968 list: Pull agreements signed with St. 
Christopher-Nevis-Ang. Although economically developed countries are 
excluded from the Investment Insurance Program, insurance may be avail¬ 
able for some of the underdeveloped dependencies of France, Netherlands, 
Portugal and the United Kingdom. 

PRR/PIC/ID rEABurton:tm: 


- 45 - 








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